New Finaccord research reveals dramatic modifications in client attitudes to journey insurance coverage since COVID-19

LONDON, Dec. 16, 2022 /PRNewswire/ — Client journey insurance coverage markets have been closely impacted by the COVID-19 pandemic, with specific disruption to worldwide journey by older travellers. Each take-up charges and the sorts of coverage purchased have modified, and shoppers at the moment are extra conscious of the danger posed by pandemics.

Finaccord has launched a devoted client research throughout ten key markets, revealing intimately how the journey insurance coverage panorama has modified throughout totally different geographies and demographic teams.

Key findings embody:

• As anticipated, there was large disruption to underlying journey markets: worldwide journey was most impacted, particularly amongst older travellers. The proportion of older travellers (55 plus) taking a visit overseas over a two-year interval fell from 44% to 22% between Finaccord’s earlier survey carried out in 2017 in comparison with its survey in 2022; this was a lot bigger than a drop of 46% to 38% within the 18 to 34 age band over the identical durations. Home journey additionally suffered, although the decline was much less drastic than for worldwide journey.
• Because of this, the kind of coverage that travellers buy has modified: domestic-only insurance policies accounted for 1 / 4 of insurance policies acquired within the 2022 survey, up from 9% in 2017. In distinction, normal insurance policies fell from 73% to 44%, whereas all different non-standard insurance policies (e.g. for backpackers, older travellers or folks with pre-existing medical situations) have been marginally extra well-liked amongst insured travellers.
• Claims are up usually, although claims acceptance charges have remained steady: claims charges elevated to 14% in 2022 from 10% in 2017 as a mean for these ten international locations, with international locations like Canada and the UK seeing claims frequency double. Regardless of this, claims acceptance charges remained remarkably constant in most international locations. COVID-19 was a consider 56% of claims reported by respondents.
• Most shoppers are prepared to pay extra for journey insurance coverage in future: with the exceptions of France and the US, a majority of respondents in all the international locations surveyed by Finaccord are prepared to pay extra for journey insurance coverage sooner or later if it contains pandemic cowl.

Notes to editors:

Finaccord is a market analysis, publishing and consulting firm specialising in monetary companies that’s a part of Aon International Operations SE Singapore Department, part of Aon plc (NYSE: AON). It offers its purchasers with perception into and details about main points in monetary companies world wide, with a selected give attention to advertising and distribution.

Finaccord’s sequence of experiences investigates shoppers’ attitudes and behavior in relation to journey insurance coverage and help in ten main international locations (Australia, Brazil, Canada, China, France, Germany, Italy, Spain, the UK and the US). It makes use of the outcomes of Finaccord’s survey of over 13,000 respondents to offer perception on the important thing international journey insurance coverage markets, utilizing nationally-representative samples.

To supply these experiences, at the least 1,000 respondents have been surveyed in every of Australia, Canada, France, Germany, Italy, Spain and the UK, over 1,500 in Brazil and round 2,000 in every of China and the US. Respondents have been requested about journey that they had taken within the earlier 12, 24 or 36 months. For consistency with earlier experiences and to seize the impression of the pandemic, solely solutions from respondents that had travelled within the earlier 24 months have been included within the survey evaluation.

Evaluation is offered in 5 most important fields: underlying journey tendencies, journey insurance coverage uptake, traits of journey insurance coverage insurance policies, client attitudes to journey insurance coverage within the context of the pandemic, and claims tendencies.

SOURCE Finaccord, an Aon firm